Here are five banks that offer up to 7.30% interest on 3-year FDs for senior citizens

Investing in fixed deposits is popular among senior citizens as it offers liquidity and ensures interest income periodically. As the Reserve Bank of India (RBI) has kept the key repo rate unchanged at  4 percent for over a year now, most banks have reduced interest rates on FDs. Despite falling interest rates, smaller private and small finance banks offer interest rates of up to 7.30 percent on three-year FDs for senior citizens, as per data compiled by BankBazaar. Here are the top five banks offering the best interest rates on three-year FDs for senior citizens.

Suryoday Small Finance Bank offers 7.30 percent interest on three-year FDs for senior citizens. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.24 lakh in three years. The minimum investment required is Rs 1,000.

Yes Bank offer 7 percent interest on three-year FDs for senior citizens. Among private banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.23 lakh in three years. The minimum investment required is Rs 10,000.

Ujjivan Small Finance Bank offers 7 percent interest in three-year FDs for senior citizens. Rs 1 lakh invested grows to Rs 1.23 lakh in three years. The minimum investment required is Rs 1,000.

IndusInd Bank offers 6.50 percent interest in three-year FDs for senior citizens. Rs 1 lakh invested grows to Rs 1.21 lakh in three years. The minimum investment required is Rs 10,000.

The smaller private banks and small finance banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.

The data on FDs is as of 8 September 2021, as given on respective websites. Interest rates given are for senior citizens of 60-80 years of age (deposit amount below Rs 1 crore). All listed (BSE) public sector banks and private banks are considered for data compilation. Banks for which verifiable data is not available are not considered. For all FDs, quarterly compounding is assumed.